What is a safe-haven currency? What are the most noteworthy safe-haven currencies in 2021?

　　What is a safe-haven currency?

　　As the name suggests,a safe-haven currency is a currency with safe-haven value.It usually refers to a currency that is not easily affected by factors such as war/politics/market fluctuations and is not easy to depreciate.It has the characteristics of stable exchange rate and not easy to depreciate.Once the economic environment or political landscape is turbulent,or there is a sudden black swan event(such as a new mutant virus newly discovered in South Africa this week),when other assets in the panicked market are sold off sharply,it is easier for safe-haven currencies Favored by funds,it rose against the trend.There are currently three recognized safe-haven currencies in the world:the US dollar,the Japanese yen,and the Swiss franc.

　　·U.S.dollar(USD):Due to the strong dominance and dominance of the United States,its safe-haven value comes from the huge fleet of aircraft carrier fighters and a strong economic system behind it.Since the end of the 19th century,the U.S.economy has rapidly developed into one of the most powerful countries in the world.Since then,the U.S.dollar has established a position in the currency industry.After the end of World War II,Europe was devastated by the war and the economy was severely slumped.The U.S.dollar became the world’s most powerful country in one fell swoop.The dollar became the center of the global monetary system.The world's major precious metals,energy products,etc.are priced in US dollars,so once the risk comes,market investors tend to exchange other currencies or assets in their hands into US dollars.At the same time,the strong liquidity of the US dollar makes the US dollar the most convenient for hedging.currency.

　　·Japanese Yen(JPY):The main attraction of the Japanese yen as a safe-haven currency is its extremely low interest rate,making it the preferred currency for carry trades.The Japanese real estate bubble in the 1990s caused the Japanese economy to collapse.In order to stimulate the economy,the Bank of Japan continued to reduce interest rates,which kept the yen low for a long time and became the currency with the lowest financing cost in the world.When the global risk aversion mood increases,the risk and uncertainty increase,the yen is the first choice for investment,and investors can easily obtain huge and cheap yen assets from Japan.

　　·Swiss Franc(CHF):The Swiss franc is a safe-haven currency mainly because of its"safety".Due to Switzerland's famous permanent neutrality,Switzerland is considered to be the safest place in the world.If the third world war comes,then Switzerland will definitely be the last pure land,so the Swiss franc has been recognized at any time for a long time.traditional safe-haven currencies.

　　Are safe-haven currencies worth investing in?

　　Both safe-haven currencies and commodity currencies are currencies with specific attributes.When specific environments and special events occur,such currencies will be obviously driven by events,thus creating special trading opportunities and richness for investors.Profits,so learning this is very important for trading in the foreign exchange market.Usually in trading,if there are market turbulence,sudden war events,sudden black swans and other events,all kinds of assets are obviously sold off sharply.At this time,it means an opportunity for the safe-haven currency,which triggers a Strategies for trading safe-haven currencies.However,it should also be noted at this time that each safe-haven currency has its own characteristics,so each safe-haven currency may respond differently to events.For example,on November 26,when the new virus in South Africa hit the market,it was an investment feast for safe-haven currencies.

　　On November 26,a new variant of the new coronavirus with the code name"B.1.1.529"broke out in South Africa.European countries successively stopped flying with South Africa,and the world was in a panic for a while.Some analysts said that due to the large number of mutations in this virus,and the terrifying mutation sites,many experts believe that it may be the most ferocious and the worst mutant virus ever discovered so far,and the degree of mutation exceeds expectations.The former Delta virus that panicked the world may be only one-tenth of its power,not even worthy of its shoes.

　　Therefore,this panic is most intuitively reflected in the financial market.The global stock market plummeted across the board under the lead of the US stock market.US crude oil fell by 14%in a single day,reproducing the horror scene of last year's"negative oil price",and the financial market once experienced a liquidity crisis.,At this time,funds are flowing into the two currencies of Japanese yen and Swiss franc to seek hedging,and the exchange rates of the US dollar against the Japanese yen(USDJPY)and the US dollar against the Swiss franc(USDCHF)have fallen sharply,setting a record for the largest single-day decline in the year.For investors who trade safe-haven currencies,it's a wave of huge profits.

　　(On the day South Africa's new virus was announced,the USDJPY exchange rate plummeted by more than 200 points,indicating that the yen appreciated)

　　(USDCHF also plummeted,indicating an appreciation of the Swiss franc)

　　What are the most noteworthy safe-haven currencies in 2021?

　　In addition to the above-mentioned three major safe-haven currencies,the US dollar,the Japanese yen,and the Swiss franc,the euro is also generally considered to have a certain safe-haven value,and gold other than currencies is also generally regarded as a safe-haven asset.

　　The euro is the world's second largest currency other than the dollar.It has a similar safe-haven value to the dollar,both due to the strong economic power behind it.In some specific periods,the euro has fewer unease factors than the dollar.During times of economic chaos or political uncertainty in the United States,investors will turn more to the euro,and low interest rates in major European economies have also raised expectations that the euro will act as a safe-haven currency.

　　Safe-haven currencies have certain common characteristics,such as:high liquidity,high stability,and low future risks.Gold is also a safe-haven asset that cannot be ignored.It has been proved countless times in human history.Value,and its market position,is recognized as a hard currency.Gold is considered the best safe-haven asset especially during times of war/economic turmoil and when inflation is high.At the same time,gold is an investment tool recognized by global investors,and it is also easier to carry than other safe-haven currencies,and its liquidity in the market is very high,whether it is physical gold jewelry,gold bars,or non-physical gold ETFs,gold funds,gold bonds,etc.,all prove that the liquidity of gold is extremely high.Based on the three characteristics of gold’s asset,portability and liquidity,it can be said to be the best safe-haven asset other than the US dollar,the Japanese yen,the Swiss franc and the euro.

　　The above-mentioned hedging varieties can be traded in the translation market.The spreads of EUR/USD,USD/JPY and AUD/USD are as low as 0.7,gold and silver as low as 2.8,and crude oil as low as 0.7.4.5,the spread of Ethereum and Bitcoin is as low as 8.6,which is the lowest level in the market,and the deposit is even more rewarded.